Q: So how many small businesses does Walmart have to destroy to meet Wall Street's expectations?
A: All of them...
In the fourteen years between Y2K and now, Walmart's revenues grew ~200% from $165 billion to $476 billion. Millions of small businesses worldwide were decimated, so that Walmart's shareholders could hollow out local economies and siphon the profits to offshore bank accounts. All while contributing less than nothing to the "demand" side of the economy i.e. that part of the economy that was discarded (and replaced with debt) beginning in 1980 with the birth of Supply Side Ponzinomics.
And how much did Walmart's stock price gain during the past 14 years? $20 (from $58 to $78). That's 2% per year BEFORE inflation (see second chart below).
Yes, it turns out that Walmart's conquest to take over the world hasn't met Wall Street's "expectations", despite now having recurring revenue of half a trillion dollars.
May 15th, 2014: "Walmart Sales Miss Expectations"
"Chief Executive Officer Doug McMillon, who took the post in February, has been working to revive Wal-Mart’s U.S. growth after lower food-stamp payments"
May 15th, 2014: "Walmart Sales Miss Expectations"
"Chief Executive Officer Doug McMillon, who took the post in February, has been working to revive Wal-Mart’s U.S. growth after lower food-stamp payments"
In a sick twist of irony, Walmart, the world's largest small business destroyer, is now being impacted by lower government food stamp payments:
"In the months since the first $5 billion in stimulus funding was cut, food pantries have been struggling to provide enough food for the hungry. Poverty remains at record high levels, and three job applicants compete for every job opening."
Fifteen years of economic carnage for next to nothing...
WMT stock price in red (right scale)
Revenues Gray Shade ($billions) left scale:
Walmart's stock, adjusted for inflation. Zero upside in 14 years despite 200% revenue growth (and this INCLUDES dividends). Take out dividends and the stock is lower today than it was 14 years ago...
You see, once Walmart's year-over-year sales growth slowed, the Price/earnings multiple on the stock fell, and it became "dead money" despite the fact that revenues grew 200%.
Is This A Great Fucking System? Or What?
Below is Billy Gates' stock, adjusted for inflation (and including dividends). Revenue grew 260% from $22 billion to $83 billion over fourteen years. Yet, once again, expectations were not met. Steve Ballmer was CEO from 2000 to 2014 and retired worth ~$20 billion thanks to insider stock grants and stock options. He made $750 million when the stock popped as he announced his own retirement. As always, you can't make this shit up.
The most profitable company in human history:
This is the story of how the entire economy was cannibalized in the past several decades. More was never enough for Walmart - and every other multinational greed machine.
